SMIC, Huawei, imec, and Qualcomm in Joint Investment on SMIC's New Research and Development Company

A Joint Collaboration is Set Up to Build China's Most Advanced Integrated Circuit Research and Development Platform.

Jun 23, 2015, 09:11 ET from Semiconductor Manufacturing International Corporation

SHANGHAI, June 23, 2015 /PRNewswire/ -- Semiconductor Manufacturing International Corporation ("SMIC", NYSE: SMI; SEHK: 981), China's largest and most advanced semiconductor foundry; Huawei, a leading global information and communications technology (ICT) solutions provider; imec, one of the world-leading nanoelectronics research and development (R&D) centers; and Qualcomm Global Trading Pte. Ltd., an affiliate of Qualcomm Incorporated, one of the world's largest fabless semiconductor vendors, held a signing ceremony at the Great Hall of the People, to announce the formation of SMIC Advanced Technology Research & Development (Shanghai) Corporation, an equity joint venture company. The joint venture company will focus on R&D towards next generation CMOS logic technology and build China's most advanced integrated circuit (IC) development R&D platform.   

His Majesty (H.M.) King Philippe of Belgium is visiting China in the framework of several cooperation agreements between China and Belgium related to cutting-edge technology. A Chinese leader and H.M. King Philippe of Belgium witnessed the signing ceremony of the joint investment.

SMIC Advanced Technology R&D (Shanghai) Corporation will be majority owned by SMIC, while Huawei, imec, and Qualcomm will be minority shareholders. The current focus will be on developing 14nm logic technology. Dr. Tzu-Yin Chiu, Chief Executive Officer and Executive Director of SMIC will be the legal representative, Dr. Yu Shaofeng, Vice President of SMIC will be the general manager.

This project is a major breakthrough in the cooperation model for IC manufacturers, international trade companies and research institutions. This project will facilitate closer cooperation between upstream and downstream companies, leading-edge R&D, and other synergies in the industry's global eco-system. With the joint venture company oriented on innovation, it can target the demands of the industry more quickly and effectively through its R&D and manufacturing resources. Meanwhile, by enabling fabless semiconductor companies to join the development process as shareholders, the product development cycle can be shortened and the advanced process node tape out time can be accelerated.

In the first phase, the joint venture company will develop 14 nanometer CMOS technology for mass production, which will be based on imec's state-of-the-art knowhow in advanced semiconductor processing technology. The new R&D project will be done at SMIC's production line.

SMIC will have the rights to license the required intellectual property rights on the mass production technologies of advanced nodes developed by the joint venture company, enabling these technologies to be applied to SMIC's current and future range of products and serve SMIC's business with other companies. This can improve the overall level of China's IC technologies, and is expected to facilitate the mass production of 16/14nm ICs in China by 2020, which is one of the goals set by the National IC Industry Development Outline. In the future, companies in China's IC manufacturing industry, universities and colleges, and research institutions will continue working together on this platform to further enhance the core competitiveness of the industry.  

Dr. Zhou Zixue, Chairman, of SMIC; Steve Chu, Vice President of Huawei; Ludo Deferm, Executive Vice President of Corporate Business and Public Affairs of imec; and Derek Aberle, President of Qualcomm Incorporated were all present at the signing ceremony.

"This is the most advanced work for China's IC industry," said Dr. Tzu-Yin Chiu, Chief Executive Officer and Executive Director, of SMIC, "With 15 years of experience in manufacturing and R&D, SMIC is China's largest semiconductor enterprise and has the capabilities to bring 14nm technology into production. It is exciting to be working with the largest IC design company both in China and abroad, and the world's top research institutes to tackle advanced IC process technology. This collaboration will play an important role in improving our technologies and products. The new company model has allowed us to explore a new path to open up R&D and manufacturing resources in this industry's ecosystem, and develop our advanced technology and R&D capabilities. In addition, it actively promotes the collaboration across all parts of the eco-system in China. "        

Steve Chu, Vice President of Huawei said: "Huawei has always been open to win-win partnerships. With our 20 years of experience in the IC design field and collaboration from our global partners, we are keen to promote the development of research capabilities in IC technology, to create China's most advanced IC R&D platform. We believe that this collaboration will consolidate the IC domain, increase its resources and capabilities, and thereby improving the overall level of China's IC industry. The improvements will provide more benefits to operators, companies, customers and partners."

Luc Van den hove, CEO and president of imec, added: "We see a growing potential in China, both as a market and as a source of innovative engineering. The expertise of the four partners is focused on the creation of an excellent platform to foster nanoelectronics R&D in China. And the joint development of a 14nm process facility will be a step stone to achieve this goal. A step stone that, I am convinced, will benefit the world's IC manufacturing community."

"We are pleased to collaborate with SMIC, Huawei and imec to establish this new technology R&D joint venture company," said Derek Aberle, president of Qualcomm Incorporated. "This is a significant milestone for the Chinese and global IC industries, which reinforces Qualcomm's commitment to the continued growth of the vibrant semiconductor ecosystem in China. We believe that this venture will serve to better meet the growing needs of local Chinese and global customers who demand high performance, low power mobile devices. The collaboration will also help bring even more advanced processing technology and wafer manufacturing capacity to China, thereby helping China to build capability in FinFET technology. "

About SMIC

Semiconductor Manufacturing International Corporation ("SMIC") (NYSE: SMI; SEHK: 981) is one of the leading semiconductor foundries in the world and the largest and most advanced foundry in mainland China. SMIC provides integrated circuit (IC) foundry and technology services at 0.35-micron to 28-nanometer. Headquartered in Shanghai, China, SMIC has a 300mm wafer fabrication facility (fab) and a 200mm mega-fab in Shanghai; a 300mm mega-fab and a second majority owned 300mm fab under development for advance nodes in Beijing; and 200mm fabs in Tianjin and Shenzhen. SMIC also has marketing and customer service offices in the U.S., Europe, Japan, and Taiwan, and a representative office in Hong Kong. For more information, please visit www.smics.com.

Safe Harbor Statements

(Under the Private Securities Litigation Reform Act of 1995)

This document contains, in addition to historical information, "forward-looking statements" within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on SMIC's current assumptions, expectations and projections about future events. SMIC uses words like "believe," "anticipate," "intend," "estimate," "expect," "project" and similar expressions to identify forward looking statements, although not all forward-looking statements contain these words. These forward-looking statements are necessarily estimates reflecting the best judgment of SMIC's senior management and involve significant risks, both known and unknown, uncertainties and other factors that may cause SMIC's actual performance, financial condition or results of operations to be materially different from those suggested by the forward-looking statements including, among others, risks associated with cyclicality and market conditions in the semiconductor industry, intense competition, timely wafer acceptance by SMIC's customers, timely introduction of new technologies, SMIC's ability to ramp new products into volume, supply and demand for semiconductor foundry services, industry overcapacity, shortages in equipment, components and raw materials, availability of manufacturing capacity, financial stability in end markets and intensive intellectual property litigation in high tech industry.

In addition to the information contained in this document, you should also consider the information contained in our other filings with the SEC, including our annual report on Form 20-F filed with the SEC on April 28, 2015, especially in the "Risk Factors" section and such other documents that we may file with the SEC or SEHK from time to time, including on Form 6-K. Other unknown or unpredictable factors also could have material adverse effects on our future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this document may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated or, if no date is stated, as of the date of this document.

SMIC Contact Information:

English Media

Michael Cheung Tel: +86-21-3861-0000 x16812 Email: Michael_Cheung@smics.com

Chinese Media

Jane Tang Tel: +86-21-3861-0000 x10088 Email: Jane_Tang@smics.com

Investors

Investor Relations Tel: +86-21-3861-0000 x12804 Email: IR@smics.com

About Huawei

Huawei is a leading global information and communications technology (ICT) solutions provider. Our aim is to enrich life and improve efficiency through a better connected world, acting as a responsible corporate citizen, innovative enabler for the information society, and collaborative contributor to the industry. Driven by customer-centric innovation and open partnerships, Huawei has established an end-to-end ICT solutions portfolio that gives customers competitive advantages in telecom and enterprise networks, devices and cloud computing. Huawei's 170,000 employees worldwide are committed to creating maximum value for telecom operators, enterprises and consumers. Our innovative ICT solutions, products and services are used in more than 170 countries and regions, serving over one-third of the world's population. Founded in 1987, Huawei is a private company fully owned by its employees.

For more information, please visit Huawei online at www.huawei.com or follow us on:

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Huawei Contact Information:

Jenny Lin: +86-10-82882467

About imec

Imec performs world-leading research in nanoelectronics. Imec leverages its scientific knowledge with the innovative power of its global partnerships in ICT, healthcare and energy. Imec delivers industry-relevant technology solutions. In a unique high-tech environment, its international top talent is committed to providing the building blocks for a better life in a sustainable society. Imec is headquartered in Leuven, Belgium, and has offices in Belgium, the Netherlands, Taiwan, USA, Mainland China, India and Japan. Its staff of about 2,200 people includes almost 700 industrial residents and guest researchers. In 2014, imec's revenue (P&L) totaled 363 million euro. Further information on imec can be found at www.imec.be. Stay up to date about what's happening at imec with the monthly imec magazine, available for tablets and smartphones (as an app for iOS and Android), or via the website www.imec.be/imecmagazine

Imec is a registered trademark for the activities of IMEC International (a legal entity set up under Belgian law as a "stichting van openbaar nut"), imec Belgium (IMEC vzw supported by the Flemish Government), imec the Netherlands (Stichting IMEC Nederland, part of Holst Centre which is supported by the Dutch Government), imec Taiwan (IMEC Taiwan Co.) and imec China (IMEC Microelectronics (Shanghai) Co. Ltd.) and imec India (Imec India Private Limited).

imec Contact Information:

Katrien Marent, Director of External Communications, Telephone: +32 16 28 18 80, Mobile: +32 474 30 28 66, Email: katrien.marent@imec.be

About Qualcomm Incorporated

Qualcomm Incorporated (NASDAQ: QCOM) is a world leader in 3G, 4G and next-generation wireless technologies. Qualcomm Incorporated includes Qualcomm's licensing business, QTL, and the vast majority of its patent portfolio. Qualcomm Technologies, Inc., a wholly-owned subsidiary of Qualcomm Incorporated, operates, along with its subsidiaries, substantially all of Qualcomm's engineering, research and development functions, and substantially all of its products and services businesses, including its semiconductor business, QCT. For more than 25 years, Qualcomm ideas and inventions have driven the evolution of digital communications, linking people everywhere more closely to information, entertainment and each other. For more information, visit Qualcomm's website, OnQ blog,Twitter and Facebook pages.

Qualcomm Contact Information:

Jon Carvill, Corporate Communications Phone:  1-858-845-5959 Email:  corpcomm@qualcomm.com

Warren Kneeshaw, Investor Relations Phone:  1-858-658-4813 Email:  ir@qualcomm.com

SOURCE Semiconductor Manufacturing International Corporation



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